[Federal Register Volume 66, Number 242 (Monday, December 17, 2001)]
[Notices]
[Pages 64961-64962]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-31005]


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DEPARTMENT OF DEFENSE

Department of the Army


Proposed Change in Acquisition Policy--Satellite Motor 
Surveillance Service

AGENCY: Headquarters, Military Traffic Management Command, DOD.

ACTION: Notice of intent.

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SUMMARY: The Military Traffic Management Command (MTMC) proposes to 
revise transportation services associated with the Defense 
Transportation Tracking System (DTTS) by requiring carriers to 
incorporate any charges for Satellite Motor Surveillance Service (SNS) 
into the basic linehaul transportation rate for motor freight 
shipments. This proposed revision applies to the movement of arms, 
ammunition and explosives (AA&E) shipments.

DATES: The policy proposed by this notice shall be effective no earlier 
than February 15, 2002. Interested parties are requested to submit 
comments on this notice. All comments submitted within 60 days of 
publication of this notice will be carefully considered before a final 
decision is made on the matter.

ADDRESSES: Comments should be addressed to Headquarters, Military 
Traffic Management Command, Hoffman Building II, 200 Stovall Street,

[[Page 64962]]

Room 10S07, Alexandria, VA 22332-5000, ATTN: MT-DAC.

FOR FURTHER INFORMATION CONTACT: Mr. Frank Galluzzo, (703) 428-2327.

SUPPLEMENTARY INFORMATION: The Defense Transportation Tracking System 
(DTTS) provides satellite tracking of domestic motor shipments while 
enroute (between origin and destination) and increases security and 
response capability for AA&E shipments in the event of accident or 
incident. SNS is a transportation protective service that permits 
Department of Defense (DOD) to obtain periodic in-transit reports and 
messages on shipment movements in the DTTS. Since its inception in 
February 1989, the DTTS has been expanded to cover a large number of 
shipments involving Security Risk Categorized (CAT) munitions. It is 
the DOD policy to track all CAT I through IV and Uncategorized 
Munitions shipments using SNS. Included in these categories are most 
types of arms, ammunition and explosives shipped by DOD or DOD 
contractor-sponsored shipments.
    On July 6, 1993 MTMC published a Federal Register notice July 6, 
1993 (58 FR 36188) stating that motor carriers would be required to 
include SNS charges for AA&E shipments in their transportation line 
haul rates, and that SNS charges as an accessorial service would no 
longer be accepted for these shipments. In response to industry 
comments MTMC stated in a Federal Register notice on January 3, 1994 
(59 FR 75) that charges for SNS would continue to be expressed as a 
separate accessorial charge and considered along with linehaul rates 
and other accessorial charges to determine the overall low rate carrier 
for rating and routing purposes. The primary basis for the MTMC 
decision to continue separate SNS charges was stated to be that the SNS 
program objectives for AA&E shipments had not been completely 
implemented, but that MTMC's policy would continue to be procurement of 
services and selection of a carrier based on existing criteria.
    MTMC has reconsidered the policy of separate SNS charges, and now 
proposes that SNS accessorial charges be discontinued for AA&E 
shipments. SNS services would still be required on AA&E shipments. 
However, in lieu of an accessorial charge, each carrier would include 
all costs of providing satellite tracking service in the carrier's 
basic linehaul transportation rate. At one time many munitions 
shipments did not require SNS service. Transportation Officers ordered 
SNS as needed, on a shipment-by-shipment basis. Thus, it was not 
logical or economical to include such charges in the linehaul rate. An 
agreed stipulation signed in December 1994 by the Munitions Carriers 
Conference and the United States provided that SNS would be continued 
at that time as a separate accessorial charge. Thee stipulation also 
provided that it would not prevent MTMC from making any policy change 
which it determines to be necessary to protect the public interest or 
the fiscal and operational requirements of the DOD.
    MTMC now proposes to change this policy for AA&E shipments since it 
is expected to result in operational efficiencies and lower overall 
transportation costs to the public, thus furthering the public interest 
and protecting the fiscal requirement of the DOD. Satellite tracking 
devices are now in universal use by motor carriers. MTMC requires 
satellite tracking be provided routinely on all DOD motor freight 
shipments of arms, ammunition and similarly classified commodity 
categories. There is no longer any reason to maintain a separate 
accessorial charge for a service that is considered essential to these 
shipments and can be included in the carriers' basic linehaul rate.
    MTMC requirements and standards for SNS and related services can be 
found at www.mtmc.army.mil in the MTMC Freight Traffic Rules 
Publication No. 1B dated October 19, 2001.
    This proposed policy change applies only to the movement of AA&E 
shipments. MTMC will continue to maintain an accessorial service in the 
Freight Traffic Rules Publication No. 1Bb for shippers to order motor 
surveillance service (SNS) for certain types of shipments which require 
this type of surveillance. Typically these shipments may include 
historical and high value articles, one of a kind items or other items 
of a unique nature that require SNS during the transportation process. 
SNS for these articles will be ordered by the shipper on a case-by-case 
basis and only from carriers who provide this service and have a rate 
on file with MTMC. MTMC will develop and publish a in the Freight 
Traffic Rules Publication No. 1B an accessorial item for this service.

Luz D. Ortiz,
Army Federal Register Liaison Officer.
[FR Doc. 01-31005 Filed 12-14-01; 8:45 am]
BILLING CODE 3710-08-M